The expected correction was due to the very over bought nature of the gold market in the short term.

The catalyst was the mini parabolic spike seen in August, profit taking and the 27% rise in margin requirements set by the Chicago Mercantile Exchange, which followed Shanghai, where margins were also raised on gold futures.

The correction is healthy as the sharp move upwards was making some investors and diversifiers nervous.

Gold in US Dollars – January 2009 to Today with 50, 100 and 144 Day Moving Averages

In time, this will likely be seen as another paper driven sell off on the COMEX as physical supply remains limited while demand remains robust, particularly from central banks and from China, India and much of Asia.

With gold now down nearly 10% or $200 from its recent ‘peak’ value buyers are getting positioned to buy on the dip. Some may wait until we see a day or two of higher closes and the adage to never catch a falling knife is apposite.

Dollar, euro and pound cost averaging remains prudent especially given the high level of uncertainty regarding the market in the short term.

Short term support may be seen at the psychological level of $1,700/oz but momentum traders and Wall Street players with concentrated short positions may press their advantage and manipulate prices to lower levels whereby they may close some of their short positions - pocketing a tidy short term profit.

Strong support can be seen between the 144 day moving average at $1,522/oz and the 100 day moving average at $1,571/oz. Interestingly $1,571/oz was previous resistance and therefore could now become support.

However, given the extent of global demand for physical bullion due to massive macroeconomic, systemic and monetary risk facing us today, there is the real possibility that gold’s correction is more shallow with the 50 day moving average of $1,630/oz providing support.

The gold bears have jumped on the ‘gold bubble bandwagon’ again after a long period of silence.

The most vocal gold bears who are widely followed in the media and accorded guru status are Dennis Gartman and the celebrity economist, and uber Keynesian, Nouriel Roubini.

Both have made bearish calls regarding gold in recent years.

In so doing they have joined a chorus of so called financial and economic experts calling gold a bubble since gold rose above $850/oz in late 2007.

Gold was called a bubble by many in March 2008 (more than 3 years ago) when gold reached a nominal high of over $1,000/oz.

‘Gold bubble’ calls were made in December 2009 when gold reached a nominal high of $1,200/oz.

Further ‘gold bubble’ calls were heard more recently in November and December this year when gold reached $1,400/oz and then consolidated at these levels.

Roubini’s basis for calling gold a bubble is simplistic and somewhat incoherent but simply put he appears to believe that massive debt will create a deflationary depression which will lead to gold falling in value.

Previously Roubini had communicated on twitter that “Spam is a better hedge against inflation than gold: you can eat it and it lasts 1000 years. Gold is, as Keynes aptly said, a barbarous relic.”

However, it is difficult to ascertain his position as he has not backed it up with a research paper, an article or an interview. Rather he has chosen to tweet a series of somewhat conflicting and incoherent messages.

One message suggested that those buying gold were lemmings and sheep.

Another showed a chart from an unnamed Reuters editor which purported to show ‘A Tale of Two Bubbles: attached a Gold vs Nasdaq Chart’.

The chart was a classic example of data mining and looked at only 5 years of data. From 1987 to 2000 the Nasdaq rose 18 fold in 13 years.

Today at $1700/oz gold is up less than 7 times since the 20 year bear market lows of $250/oz seen 11 yrs ago in 1999.

More importantly, comparing like with like, gold rose 24 times from 1971 to 1980.

How can the crystal ball gazers be so certain that gold will not replicate the performance of its last bull market?

Cross Currency Table

Roubini also contradicted himself somewhat when he suggested in a tweet that gold bullion in a safe vault was a safe haven that would protect from “global financial crisis 2.0.”

It appears Mr Roubini is having his cake and eating it too. We await clarification of his opinion regarding gold and whether it merits an allocation in a diversified investment portfolio or as financial insurance against “global financial crisis 2.0.”

Dr Constantin Gurdgiev, a non executive member of GoldCore’s Investment Committee, has written a considered article overnight looking at gold’s correction and Nouriel and all the other gold bears should inform themselves by reading it.

For the latest news and commentary on financial markets and gold please follow us on Twitter.

SILVER Silver is trading at $39.49/oz, €27.40/oz and £24.13/oz.

PLATINUM GROUP METALS Platinum is trading at $1,806.50/oz, palladium at $746/oz and rhodium at $1,800/oz.

Actually a great deal of thought went into the sequence (it's an inside baseball thing) done for the benefit of the great professor.

You need to understand his ego is so Huge that he will read a high number on the negative arrow as a disagreement with the statement that he sucks and may even click on it himself. But we will all understand its true meaning, that the emperor has no clothes.

A side objective is to see if the Zero Hedge rating system can handle triple digits.

I hate the pride these top callers have. Whether it's Roubini or Pretcher or Gartman, they never NEVER admit being wrong. They twist their mistakes using double speak into half truths and the MSM gleefully have them all back on air to explain the new upmove in precious metals..Sickening.

When I think of my Gold and Silver holdings I like to think about them years out. Where's Gold going to be in 2014 or 2016? Does anyone who holds physical (besides the corrupt bullion banks and commentators) believe Gold and Silver will not be multiples of their current prices?? Of course not! Having a long term outlook really calms the nerves. Not to say I don't follow the prices daily, but I relax more about it. Having sound money = a sound mind.

dont measure your metals in dollars, and you wont even care. Measure it in itself, aka in ounces. Whether you have on paper profits or on paper losses, is really irrelevant. Unlike equities or bonds, the underlying entity in metals, cannot go bankrupt, or cease to exist.

They simply are, count the ounces, and sell them only to buy other real assets. Like land, etc

I doubt this will be a serious correction, and I doubt that the mass buying during spring and summer will be wiped out simply with the spec longs being scared off. I blew 20% of my powder yesterday, will probably buy more in a couple of hours if the price comes down a little, and will blow the rest next week. I don't think they'll knock any of the sentiment out of gold here really and the only way for it to go sub 1620 or so would be more margin requirment increases or shenanigans...just my two cents...

Roubini should spend more time thinking and less time talking. You could plot the assets of a compounding money market versus Yak Dung in Lahsa and get a beautiful overlap if you are willing to use arbitrary origins and different axes (which is exactly what he did).

I scanned all the gold stories on the CNBC videos. It is unimaginable to me that a secular bull market could be so reviled as gold. That blowhard Gartman--I hope you are reading this--was yacking (Yaking) about cab drivers and shoeshine boys buying gold. Bullshit. You are inventing that crap. I work with 30 very bright colleagues at a top-ten University chemistry department. (Some of you may know my name; anonymity ain't what it used to be.) These bright guys with my prodding are not yet buying gold. Everybody knows about gold, but they are not buying it.

I've been a gold bull since 1999 and I haven't sold a fucking ounce. (Do I sound pissed at the margin hikes and media campaign?)

Yes, you sound pissed. It's frustrating playing with zombies. Rather, it's frustrating expecting zombies to be something more. But if you just face reality and see that they are zombies and not real people, it helps. Nature likes the shotgun method, like shooting millions of sperm out so that just one might level up. You are literally one in a million. Maybe feel some sadness for them, but don't let them throw you off to die with them. Btw, are those bright people you mentioned really bright if they aren't listening to you?

The 16's aren't coming. The buying opportunity is right now; anything below $1800 is going to be a bargain by Tuesday. Their best opportunity to knock this below $1700 was this morning, didn't happen. If we close today above $1700, it's off to the races. Tomorrow will be pants-shittingly epic.

Not yet. I would wait until Gold approached $1670, 50 MA within the next week or so. On the other hand, I am confident that Gold will trade well over $2500 per oz within 12 months given the amount of money that will be 'printed' to re-elect Obama. Futher, we are entering the 4th quarter, with Diwali, Christmas and various New years celebrations approaching. For those of us who are long bullion, and are trying to preserve capital, we need do nothing. This sell off is a blip.

FYI, I am not a gold bug. I look forward to the day when I can sell all of it and buy the top floor of the Trump Las Vegas, complete with sex slave girls and bathtubs of champagne.

Before we removed MacArthur from the Philippines in WWII we removed the gold and silver, and burned the fiats. We removed 10,800 pounds of gold!

Apparently it was more important to keep the gold from falling into the hands of the Japanese than removing Old "I'll shall return" from Corregidor, if gold is in a "bubble" it is a 4,000 year old bubble.

There were 18,000 Treasury checks totaling $38,000,000 which had been received by the Philippine Treasury for payment and had not been sent to the United States for credit. In addition to these securities, there was on Corregidor a large amount of gold, silver, securities, and government documents as yet not been turned over to the Commissioner. These had served as the Philippine Commonwealth reserves and comprised over one-and-a-third million grams of gold and nearly sixteen and one-half million silver pesos. A rough summation of the valuables collected under the first War Powers Act was nearly $3,000,000 in American currency, $28,000,000 in Philippine currency and 10,800 pounds of gold. The paper currency was easily disposed of by burning after the serial numbers had been recorded and radioed to the United States

Because the gold was the most indestructible, it was important to get it out of the Philippines. As the opportunity for this seemed unlikely, it appeared inevitable that the gold would soon have to be sunk in the Bay and risk recovery by the Japanese. President Quezon and the High Commissioner were greatly concerned with the problem. If it could not be destroyed, or safely sunk in the bay, there was but one answer remaining -- evacuate the gold and silver by submarine.

I suppose pundits like him realised to get to the top of the class (as for back as elementary school) it was a better idea to say what the teacher wanted to hear than to say what was correct or made sence. Its worked well; they've built entire careeres around being delusioned and promoting delusion. However, when they look at the world do they understand what is happening??

If your waiting to be told then yes, go right ahead. Don´t worry about the damage to your teeth, I´m sure your dentist will accept the toothmarked bauble as payment for any repairs. Have fun digging through your own baby ruths. That will be one expensive flush if you miss it.

This ongoing insider joking does remind me, remember that one quick method to test a gold coin, bite it to see if it's softer than your teeth. Nice thing about gold is that it's completely at home around us organics and plays nice in the body. It's actually perfect for use in medical devices that must go inside the body because it's non corrosive, non toxic, can be made into any shape, etc. Ask any cyborg.

Typical options expiration sell off. The last two days, the entire world production of gold was traded. Twice the production of silver. The CME is complicit. Excellent market entrance prior to Bernanke's "we aren't doing nothin' speech".

None of the fundamentals of crumbling fiat and crumbling world financial system have changed...

Once again the paper market is wagging the physical...

Buy physical and sit tight...

Weak hands or those wanting a short term profit paid in fiat are not likely to get back into gold at the lower price they expect... PMs that are sold are headed East and won't be coming back near the current price levels...

The price may have dropped, but the premiums haven't. I like how they say gold dropped 5.6% on no news on WSJ this morning. Hiking margins 26% is no news? Fuck off Bernanke bugle blowers. Why don't they hike oil Margins by 25 or 30%? Then watch their asshole buddies at Exxon Mobil cry. No then the big boys at the CME (Chicago Manipulation Exchange) wouldn't get invited to the Turks and Caicos by their greasy oil buddies. By the way, I hope Ilene fucked up their playground down there.

It is a temporary phenomenon, with weak holders sold out in favour of the strong. When the dollars resumes its decline, just watch as the rest of the world moves into Gold. By comparison the 1970's gold bubble will look like a bathtub fart.

Just posted this in another thread...I do think it's quite peculiar how all the big brokerage firms increased their price targets on gold, only to then immediately see it smacked down.

From UBS' Dominic Schnider:

Don't panic

The sharp selloff in the gold price has raised concern among investorsabout whether the metal had reached unsustainable pricelevels and that more weakness lies ahead. The CME Group also announceda 27% increase in maintenance margins to USD 7,000for each 100-oz futures contract at Comex. While a dip to the lowerrange of our 1- to 3-month trading range at USD 1,724/oz isat hand, month-to-date the metal is still up more than 7%, andyesterday’s decline should be seen in this context. This begs thequestion of whether markets will sell down the gold to price levelsprior to the US credit-rating downgrade, which would bring themetal down to USD 1,640/oz, our former trading range low. Wedo not expect this to happen. US public finances are far from gettingbetter, especially with economic growth likely to slump. A firmdurable goods order report for July does not change this picture.In addition, the structural problems in the Eurozone have yet to betackled seriously enough to prevent a disintegration of the euro inthe long run.

Recommendation

We advise investors to build up long positions in gold from a diversificationperspective. Our forecasts remain unchanged. For investorswho want to be positioned more conservatively, the rise inoption volatility toward 30% offers very attractive opportunities toset strike levels at USD 1,640/oz. Selling volatility (put options) at thislevel would bring a 9-10% annual yield over the next 1-3 months.

I do have to mention that the 125 and 150 gld puts I suggested as a hedge against profits on the physical are WAY up in just 2 days. nothing wrong with "paper" gold if its used this way, paper money is still money and it can be exchanged for the real stuff..

I am looking forward to a Dow of 700. Should be very impressive. When Gold was $1,910 Faber said he would start buying again if gold dropped $150...so if he is representative of private BiG money, I suspect there's alot of pension funds and private buyers grabbing as much gold as they can before it rises to $2,500.

If you own gold for what I (and many others) consider to be the right reasons, the price really doesn't matter. If you are trading the volatility to make a quick paper profit, then people should heed your warning. In other words, if gold drops to $600 because unemployment is at 5% and interest rates are at a healthy 6% that's great, my physical gold is there as an insurance policy against bad times 20 or 30 years from now.

Don't buy a house then! You're right that there are no guarantees in life, save your death and perhaps taxes. Does someone overpay for the life insurance policy he paid into for years when it keeps his wife and kids safe and sound for the rest of their lives after he dies young? That's gold bullion, the insurance policy. Is gold "overpriced" now if it goes to $1600 for a few months and then goes on to $2500 and then $7000 and then in a few years $600? When were you "overpaying"?

Is this hypothetical house you speak of undervalued today or was it overvalued yesterday? How do you know in advance? What is your timeframe of ownership? Is it less or more of a problem when housing "prices" go up 20% per year or is it a problem when they revert to the mean?

Don't buy a house unless you can really afford it. If you can afford a 250k house and you like it, who cares about the "price" unless you were going to flip it? You made the decision, so the market readjusted, who cares? I rented until I knew that I wanted to own a particular property and would be in one place for more than a decade.

I currently own two properties, one is "worth" significantly more than I paid for it one is probably "worth" less than I paid for it. I do not give a shit what the daily price fluctuations of my properties are and if I did really care that much because I wanted to "sell tomorrow", I probably should just have rented, like 30% of American homeowners should have been doing for the last 15 years.

Don't get me wrong, housing needs to fall another 20% and we are destroying our economy to save some speculators in the housing market, so everybody who bought a house since 2003 basically "overpaid". Prices of things fluctuate especially when the currency is being debased by lunatic Keynesians.

Death is NOT a garantee in life. You just assume that because you're surrounded by failure, sick and dying people who act as fodder and probably because you, too, are failing miserably. Any reasonably thinking creature would not make such an outragouse claim to having universal knowledge about individuals based on averages. As I've said before, if every sperm did the same, that one in a million never would've leveled up.

When the popular message is "Do THIS!" you need to step back and do your own due diligence.

When everyone was saying "You have to buy a house because prices are only going up!" we looked and said: "This can't last." We saved and had the money to buy when nobody else could - or would - at the 30 year market bottom. Got our house for 60% of original asking - the median price of a house in our area for a far from 'median' sized house and plot in a far from 'median' neighborhood. A couple years later you couldn't touch a house 1/3 the size for the same price. Much thanks to the Real Estate agent who said "In this market look two levels above what you think you can afford." A few years later we refinanced to a lower rate at a shorter time period for a lower payment (an 8+% mortgage and 20% down was the price of buying at the time - one of the reasons nobody else was doing so).

When others were stuck in the 'starter' houses they bought before or after we did, we weere already IN the house you 'move up' to and paying a lower monthly mortgage. Still there and even after the market dump, it's worth 3-4 times what we paid. Only down side is that taxes keep going up with the value (no matter how much of that increased value is due to inflation). But it's a short commute (another HUGE and all too rare benefit) and in a locale that will always be in high demand.

Sometimes you just have to be patient and wait. Sometimes (quite often actually) all the 'experts' are wrong (or trying to fleece you).

exactly, and thats exactly what people are not saying - exept on zero hedge. when the public is saying that and when the "we buy gold for $$$" signs are reversed to "we sell gold for $$$" then will be the time to sell and buy land, real estate, stocks, businesses etc etc

but at the moment, in the mid term and long term, gold can indeed only go up...

but at the moment, in the mid term and long term, gold can indeed only go up...

No, you forgot the President's plan that he won't share with us until September. It will repair the world's economies and erase all the unpayable debt of nation states and central banks. He is putting us on a Lucky Charms standard.

The biggest group is the one that thinks gold has no value and believes stuff like beauty is in the eye of the beholder. "I'm beautiful on the inside"! says the zombie! Right, keep telling yourself that. Life is but a dream, too.

There are exponentially more people in in the dollar groupthink camp than the gold groupthink camp. Because those are the two camps you need to compare if you want to compare apples to apples. Because both dollars and gold are money.

If enough people agree that something is money, then yes, you are correct. But central banks aren't stockpiling pussy (well, DSK ALLEGEDLY tried). They're stockpiling gold. They're divesting themselves of treasuries. There are calls by major exporting nations to ditch the dollar as a reserve currency.

But there are still many more people in the dollar groupthink camp who make arguments like this. You think that because things were always one way, they can never be another. Why is gold at all-time nominal highs while the stock market is nowhere near its 2008 lows? Not even adjusting for inflation, why is that? What's wrong with this picture?

Aside, pussy is probably a fair comparison for the dollar. The counterparty risk is HUGE.

Basically money is a virtual concept that exists in the minds of the members of the society.

Money is a contract between an individual and a society. In this contract society promises to perform some work for the individual in exchange for the money the individual gives to the members of the society.

Many different things can represent (bear the contract) money and gold is one form of it.

Another SHIT piece around Options Expiry by GoldCore. It NEVER fails...month after month...these CLOWNS come forward and NEVER associate the DECLINE at Options Expiry with MaxPain Points and the ILLEGAL MANIPULATION by the bullion banks.

Tyler, why the hell don't you start posting the work of GATA instead of this SHIT!

In prison, the big guy doing life - the one with all the tattoos who spends all day in the rec yard lifting twice his body weight - doesn't TELL you you're gonna get 'special attention' on shower day but you KNOW it's coming.....

Yeah, I no longer worry much about the Mad Max scenario. I doubt I'd survive it anyways. I concentrate on the Argentina scenario. High inflation, high crime rates, high unemployment, absentee government except at tax time.

You didn't hear that from anybody that lived there. Mark Twain lived in Virginia City during the silver boom and pocket mined for gold in California in the 1860s. He stated that in one boom town he lived in, the first 26 graves in the graveyard were of murdered men. And that no one was considered a big shot until he had "killed his man".

I'm kinda glad, it needed a breather and I wanted to pick up more PMs. I was afraid it had gone Apollo for good. The Dow is still at March 2009 lows priced in gold. There's no soveriegn debt remedies on the horizon that keeps gold from being remonetized.

And now Keynesians are trying to weaponize Twitter for their propaganda, if that's not a sign of the Apocolypse I don't know what is.

In the long run, if you can stand it, and I'm talking months not years, this will be a healthy washout, just as the knockdown in silver in late April. Same thing, different metal. The gold speculators are just getting their medicine this time. The big difference is how many countries are in the game. Physical accummulation should accellerate at the National level. All this means is we are that much closer to a purely physical market, just as silver is becoming. I say they keep raising margin rates to the full amount for delivery.

Have 10k to drop on PMs, been waiting for this correction for a few weeks. Would like to see $1600 but I have a feeling it will touch 1700 and continue the climb. Question for ZH'ers....6oz of gold or 3oz plus 100oz of silver?

Can argue both ways..... silver is in shorter supply and has real world uses - it IS underpriced but bulky. Gold is more portable but draws more attention. In Weimar and throughout history when you had real panics, people traded silver for gold because it was easier to carry. I suspect a good strategy is to convert some silver to gold when the ratio drops but hold onto some silver for a greater appreciation potential. In paper, GDXJ seems to be a good mix of gld and silver miners and it pays a nice dividend. CEF is a good proxy for holding.

Well theyve duct taped the markets crashed glider wings a bit, straightened the broken tail, applied a bit of bubblegum here and there...we're at altitude, time to drop the market tether line and see how this baby glides huh?

Will buy 1/2 added physical today, and 1/2 more physical gold after Bernank pukes all over himself Friday. And do I care if gold drops another 150 or so. Of course not. This is not for trading. That is why I have miners in my cash, NO MARGIN account.

This is a gift as I have whined that my stash was not where I wanted it to be.

We all know the logical arguments for gold. They are numerous, but the most important ones are:

It's a ten year trend

The central banks and nation states are busted

The system can't be fixed, so TPTB are either going to switch us to a new system or go down with the ship

TPTB are kicking the can and taking only one long term action, buying gold. They are not fixing the system, they are buying gold. Unless you think they have collectivly decided, all over the world, at the same time, to go down with the ship, they are buying gold for the new system.

Trader's trade. If you are trading paper gold, you should have protected yourself by now. You can't trade physical, so you should content yourself with the FACT, that all market manipulations fail in the long run, but first the manipulators get paid.

They have been extremely successful in this attack, so my guess is they will keep their powder dry for future assaults on gold. If I were them, I wouldn't use up another margin hike because I wouldn't have to, and each successive margin hike yields diminishing returns.

The gold/oil/platinum ratio was extremely high but know way of knowing if this was the "big one" so I didn't want to take profits on my Sprott Fund even if it was against my better judement. (20% in 1 month is a rare bird in gold) The Venezuela thing could have been the last straw. Who could know? In the end it's not going to be the price in fiat that matters but how much weight and purity you have in your pockets. Last physical oz I bought was at $1300 spot. My ears are starting to perk up. If this doesn't turn out to be a hiccup then I will just buy more physical in the bloodbath...with confidence.

Mining stocks and their proxies like SLW GDX GDXJ holding up far bettrer than the metals......... hmmm. That's bullish long term to me.

I suspect that there's not enough ammo to wage a full front assault today. They've been throwing everything at Gold, short selling the metal - but don't have the cash left to short the mining stocks. In recent smackdowns there was also an assault on the miners - lots of open market sells to set the tone for the day and late day sells to push closing price down. Forty five minutes into market open most are down less than the DJIA and SLW is up.

Nobody seemed to notice that the big run up at the beginning of the month happened when the debt cap crisis was on and government suspended their market intervention efforts because they didn't have the cash..... that tells me that this war is being waged with free government money.

Gold seems to be holding above 1700 and silver above 39........ not bad all things considered. I suspect you're seeing a staged retreat. Every new low is higher than the past. But don't feel bad for the bankers. They're making a ton of money - though they may be running a bit low on actual stocks of metal.

Someone speculated that Biden cut a deal with China not to buy this dip - to let the price drop a bit and help prop upo the $US - it's in China's interest not to have a rout on the dollar - they haven't been able to convert all their paper $US holdings into tangible goods like Australian mining companies. Jackson Hole may be one giant Kabuki play......can't wait for the show and it IS all about the show now..... MOPE - management of perspective economics.... repeat after me "All is well... All is well...."

The people trapped in the paper money bubble sure like to throw rocks at stone fortifications. Gold is no where near a bubble.

Margin raises only pull liquidity out of the whole system. It is not a coincidence stocks started the plunge on the May 1 commodities margin attacks. It won't be any different this time. In the end, stocks will suffer more because they are overpriced. Gold is having its usual OPEX raid plus spec short attack. But gold will be the big winner, the same as it was in the 2008 crisis. Gold was at all time highs when the stocks were at their lows.

"But gold will be the big winner, the same as it was in the 2008 crisis. Gold was at all time highs when the stocks were at their lows."

True. And consider that when gold crossed 1900 last week, the major indicies were off their 1year highs, but nowhere near the lows of 2008. If gold is truly a fear trade, why aren't stocks falling off a cliff? The economic data says stocks should be. Worldwide debt just confirms gold. Someone is very wrong here, and it isn't the gold camp.

I find it amusing sometimes that when people speak of ideas or positions that are not in keeping with one's own views that those individuals need to be attacked.

How come Roubini is quoted and supported when he makes calls about the economic environment that support the double dip and slow down ideas that are often bantied about by die hard gold bugs yet when he makes (or anyone else for that matter) a statement about gold that doesn't fit with the gold bug agenda he gets villified.

People calling a gold bubble are no different than those calling for $5,000 oz gold and $200 oz silver. Really ... there is no difference other than that the opinions differ.

For anyone to make any informed decision one needs to be able to look at both sides of the coin.

You are naive to think that gold wasn't ahead of itself over $1900 an ounce having just completed a $400.00 move. Those moves are the moves that trap poor retail investors into thinking that this is the big move up but those moves usually mean the current move up has ended and pause is needed.

There is nothing wrong with healthy consolidation of prices. Gold is coming back into its channel now and long term should do fine. But to wake up and seek a $3,000 gold price immediately one day is foolish nonsensical talk.

Gold bears and bobble top callers will always be around. So too will the extreme tin foil hat crowd that calls for $3,000 gold in short order.

Trade the numbers. The consolodation periods offer great opportunity to make money as do the moves upward. Trade the paper and buy the physical but never chase momo.

In China, China Agriculture and three other banks were reported to hold 3 billion Yuan gold short position. they were considered gold shorts. However, one senior bank exec stated that they held short position because their gold business clients are overwhelmingly long. They have to hedge. They would see it that their hedge happened to work.

Chinese commentators also indicated bull trend is not broken. They are telling people to load up around support levels.

In China, China Agriculture and three other banks were reported to hold 3 billion Yuan gold short position. they were considered gold shorts. However, one senior bank exec stated that they held short position because their gold business clients are overwhelmingly long. They have to hedge. They would see it that their hedge happened to work.

Chinese commentators also indicated bull trend is not broken. They are telling people to load up around support levels.

Anxiously waiting for the Bernank's speech at Jackasshole. When gold goes to $3,000, I'll reward myself with an i-phone, an i-pad and an air-book (with a total price tag of $3,000). Have faith in the Bernank (who is to me a santa claus or hanukah harry figure), his chopper and his printer will never disappoint. The pullback on PMs is transitory. Boy I want these gadgets desperately

trade whatever devalued green pieces of us government iou's you possess for the undervalued, indestructible golden relic tomorrow as the bernanke buffoon spouts his script for the "saving of the fiat world". what a joke these last few years have been, and will continue to be........sad, but true.........